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Title: Self-Employment, Workplace Flexibility, and Maternal Labor Supply: A Life-Cycle Model
Resulting in 1 citation.
1. Lim, Katherine
Self-Employment, Workplace Flexibility, and Maternal Labor Supply: A Life-Cycle Model
Presented: Washington DC, Population Association of America Annual Meeting, March-April 2016
Cohort(s): NLSY79
Publisher: Population Association of America
Keyword(s): Earnings; Maternal Employment; Self-Employed Workers; Work Hours/Schedule

Permission to reprint the abstract has not been received from the publisher.

This paper quantifies the value of self-employment as a flexible work alternative for mothers with young children. On average, self-employed women have more control over their work schedule, hours and location than wage and salary employed women. I incorporate self-employment into a life-cycle model of married women's fertility and employment decisions to estimate the value of self-employment flexibility for mothers using the NLSY79. I find that mothers with preschool aged children value the package of flexible amenities in self-employment at $7,000 annually, which represents 20% of their average wage and salary earnings. A partial equilibrium counterfactual exercise suggests that self-employment flexibility encourages married women to work when they have young children raising women's median lifetime earnings by 2.5%. My findings offer evidence that workplace flexibility is highly valued by mothers and that self-employment is a means for some mothers to gain workplace flexibility while maintaining their future earning potential.
Bibliography Citation
Lim, Katherine. "Self-Employment, Workplace Flexibility, and Maternal Labor Supply: A Life-Cycle Model." Presented: Washington DC, Population Association of America Annual Meeting, March-April 2016.